US Non-Farm Payrolls Rise By 139,000 In May, Unemployment Remains Unchanged At 4.2%

The U.S. Bureau of Labor Statistics reported on Friday that total non-farm payroll employment increased by 139,000 in May, which was higher than the estimated 125,000 increase, according to a CNBC report.

The data shows that hiring reduced marginally compared to April, when the U.S. economy added 147,000 jobs.

Meanwhile, the unemployment rate remained unchanged at 4.2%. Employment continued to trend upward in healthcare, leisure and hospitality, and social assistance.

While Health care added 62,000 jobs in May, higher than the average monthly gain of 44,000 over the prior 12 months, leisure and hospitality added 48,000 jobs, and social assistance added 16,000.

However, the Federal government continued to lose jobs, declining 22,000 in the month and is down by 59,000 since January. This reflected the Department of Government Efficiency’s (DOGE) efforts to reduce the number of positions within the government.

Major industries, including mining, quarrying, oil and gas extraction, construction, manufacturing, and others, showed little change in employment figures.

Ed Al-Hussainy, a rates strategist at Columbia Threadneedle Investments, told Bloomberg that at first glance, the labor market dataset is in line with the solid growth data seen so far this year. “There’s nothing here to change the status quo for the Fed, and some downside bets on Fed cuts this summer will likely come out,” he said.

Federal Reserve Governor Adriana D. Kugler said on Thursday that the central bank’s current monetary policy stance is well-positioned to address any changes in the macroeconomic environment.

“Disinflation has slowed, and we are already seeing the effects of higher tariffs, which I expect will continue to raise inflation over 2025,” she said.

U.S. benchmark indices continued to show strength in pre-market trade on Friday following the release of the report. The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, traded 0.79% higher in Friday’s pre-market, while the Invesco QQQ Trust, Series 1 (QQQ), which tracks the Nasdaq Composite, was up 0.83%.

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